Smart materials find a vital application in aerospace industry as an emerging research area due to their ability to adapt to surrounding conditions according to design requirements and applicability. Piezoelectric materials are commonly used smart materials for transducer applications. Among piezoelectric materials, Polyvinylidene fluoride (PVDF) is a piezo polymer which is widely used in health monitoring of composite structures, as an acoustic emission (AE) sensor, accelerometer, strain gauge, pressure sensor, etc., because of its outstanding piezo stress constant (g33), piezo strain constant (d33), flexibility and light weight. In this paper, a detailed study on behaviour and characterisation of PVDF sensor was carried out by developing Glass fibre reinforced polymer (GFRP) composites and embedding the PVDF sensor into GFRP composite structures. The laminates embedded with PVDF sensors were subjected to impact test for sensitivity analysis and acoustic emission (AE) test to analyse AE response of the PVDF sensor. During impact test, it was noticed that the maximum output voltage was 6.2V for a drop height of 100mm and the PVDF sensor embedded in the GFRP structure was found highly sensitive to simulated Auto-Sensor Test (AST) pulsing.